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New Zealand Services Sector Extends Growth Streak in August

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New Zealand's services sector continued to expand in August, extending its growth streak to three consecutive months, according to a statement by BusinessNZ on Monday.

The BusinessNZ Performance of Services Index (PSI) rose to 51.2 in August from 50.6 in July. A reading above the 50-point mark points to expansion.

New Zealand's services sector has posted its strongest reading since returning to growth, although the recovery remains fragile with three of five sub-indices still below 50, said Katherine Rich, BusinessNZ's chief executive.

The activity/sales indicator fell to 49.4 in August from 50.4 in July, while the employment measure inched up to 49.4 from 48.5. Stocks/inventories fell to 50.8 from 51.7, supplier deliveries increased to 49 from 48.4, and new orders/business climbed to 55.2 from 52.8.

Respondent comments highlighted ongoing concerns around cost-of-living pressures, interest rates and election uncertainty, with sentiment softening from July as nearly 61% of comments were negative.

The PSI's three-month moving average rose to nearly 51, its highest level since July 2023, suggesting a gradual upward trend despite the recovery remaining fragile, said Doug Steel, BusinessNZ's senior economist.

The seasonally adjusted BusinessNZ Performance of Composite Index remained in expansion territory in August, extending its run of growth.

The gross domestic product-weighted index rose slightly to 51.6 in August from 51.1 in July, while the free-weighted index remained unchanged at 52.5.

What else is happening in International?

International

TSX Closer: The Index Rises on Stronger Tech and Financial Issues

The S&P/TSX Composite Index closed higher on Friday as gains in technology, industrial and financial stocks outweighed weakness in energy, while investors assessed lower oil prices and fresh Canadian economic data.The index closed up 191.21 points, or 0.5%, to 35,697.49 with mixed sectors. Information Technology led advancers, up 3.6%, followed by Industrials and Financial that closed up 0.7% and 0.6%, respectively. Energy was down 0.7%.The Battery Metals Index, which includes companies listed both on the TSX and TSX Venture Exchange, dropped 6.4%.In commodities, West Texas Intermediate (WTI) and Brent crude fell on Friday as reports of possible diplomatic efforts to ease tensions around the Strait of Hormuz tempered concerns over immediate supply disruptions following Thursday's sharp rally. The October WTI crude oil contract settled down $2.43, or 2.3%, to $100.05 per barrel, while November Brent oil was last seen down $2.68, or 2.5%, to $104.95 per barrel.Meanwhile, December Comex gold futures dropped 0.4%, or $19.30, to $4,388.00 per ounce at last look.In currencies, the US dollar edged higher 0.2% against the Canadian dollar, with USD/CAD at 1.3864 at last look. However, Scotiabank expects USD/CAD to fall, with a target of $1.37 by year-end and $1.33 by the last quarter of 2027. The loonie has remained resilient despite heightened trade tensions, with economic data suggesting the Canadian economy continues to show strength, wrote the bank in a note.On household finances, Canadian household net worth climbed 2.9% quarter over quarter in the second quarter to more than CA$19 trillion, fueled by equity market gains that boosted the value of household assets, Statistics Canada said on Friday.Household liabilities rose 1.3% in the second quarter, with residential mortgages making up nearly three-quarters of total household debt. While household credit market debt as a share of disposable income fell from 178.6% to 176.4%, marking its largest quarterly decline since the third quarter of 2024, the agency said.In corporate news, Bank of Montreal (BMO.TO) and the Canadian Imperial Bank of Commerce (CM.TO) both announced multi-billion dollar initiatives to support critical sectors in the Canadian economy. BMO said Friday it plans to mobilize up to CA$70 billion over 10 years, targeting electricity, energy and transportation infrastructure, among other sectors including defense, mining and artificial intelligence. CIBC late Thursday committed CA$2 billion to support funding for small and medium-sized defense-related and dual-use businesses across Canada.

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International

Canadian Economic Growth Can Be Resilient Despite Tariffs, Macquarie Bank Says

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International

Daily Roundup of Key US Economic Data for Sept. 11

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